IRAN, CRYTPOCURRENCIES AND SANCTIONS

SANCTIONS RESEARCH: MORE THAN 72,000 UNIQUE IRANIAN IP ADDRESSES LINKED TO MORE THAN 4.5 MILLION UNIQUE BITCOIN ADDRESSES

On 17 May, Ciphertrace reported that these Iranian IP addresses were either involved in direct cryptrocurrency transactions or were used to query the blockchain to verify funds in cryptocurrency addresses that they control.  It says that Iranian nationals are using Bitcoin to mine and liquidate funds as the country provides licensed mining operations with inexpensive electricity to power mining rigs.  FinCEN has said that institutions should consider reviewing blockchain ledgers for activity that may originate or terminate in Iran.  The article recommends that IP data should supplement all sanctions risk mitigation strategies to ensure you’re a financial institution isn’t transacting with sanctioned countries.   FinCEN has listed a large number of addresses under its sanctions regimes.  The article provides what it terms “Sanctions Obfuscation Red Flags”.

https://ciphertrace.com/sanctions-research-more-than-72000-unique-iranian-ip-addresses-linked-to-more-than-4-5-million-unique-bitcoin-addresses

Meanwhile –

IRAN: ENERGY MINISTRY HAS SAID THOSE MINING CRYPTO USING HOUSEHOLD ELECTRICITY WILL PAY A HEAVY FINE IF THEY ARE IDENTIFIED

On 17 May, Decrypt reported that Iran’s Energy Ministry announced fines for miners using household energy, as the country has become a hot spot for mining activity.  It is said that that cryptocurrency mining is one of the 2 biggest threats to Iran’s electricity supply this year — alongside a reduction in power coming from hydropower plants due to a lack of rain.  Iran legalised industrial cryptocurrency mining in 2019 and in October introduced new regulations that directed the proceeds of Iranian-mined Bitcoin into government funds so Iran would be able to finance imports. 

https://decrypt.co/71100/mining-crypto-home-will-lead-heavy-fine-reports-iran-energy-ministry

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Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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